Summary
LlamaRisk recommends the following parameter changes based on user behavior, on-chain liquidity, and position health observed in the latest review of Aave V3 reserves.
Aave V3 Core:
- Increase supply cap for BTC.b from 10 to 20.
BTC.b (Aave V3 Core)
BTC.b has reached 93.3% supply cap utilization (9.33 / 10) on the Aave V3 Core instance.
Supply Distribution
Source: LlamaRisk, July 27, 2026
The top BTC.b suppliers run health factors between 1.14 and 2.10 with a median of 1.60, and seven of eight carry outstanding debt. All borrowing across the cohort is denominated in stablecoins, principally GHO and USDC, so health factor stability tracks the BTC price.Supply is concentrated, with the three largest suppliers holding 91.1% of outstanding BTC.b.
Recommendation
We recommend raising the supply cap from 10 to 20 on Aave V3 Core. BTC.b has held above 93% supply cap utilization since July 14, 2026, and the proposed cap is approximately 2.14x current outstanding supply, landing at approximately 46.7% post-change cap utilization.
## Specification
| Instance | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| Aave V3 Core | BTC.b | 10 | 20 | — | — |
Next Steps
We will move forward and implement these updates via the Risk Steward process.
Disclosure
This review was independently prepared by LlamaRisk, a DeFi risk service provider funded in part by the Aave DAO. LlamaRisk is not directly affiliated with the protocol(s) reviewed in this assessment and did not receive any compensation from the protocol(s) or their affiliated entities for this work.
The information provided should not be construed as legal, financial, tax, or professional advice.